McNULTY INTRODUCES BIPARTISAN SOCIAL SECURITY
NUMBER - IDENTITY THEFT PROTECTION BILL
Legislation scheduled for Committee consideration
Wednesday
(Washington, D.C.) -- Social Security
Subcommittee Chairman Michael R. McNulty (D-Green Island) and Subcommittee
Ranking Member Sam Johnson (R-TX) will join Ways and Means Chairman
Charles B. Rangel (D-NY), and Ranking Member Jim McCrery (R-LA) today to
introduce a bipartisan bill designed to address the growing problem of
identity theft.
During the course of the 16 hearings conducted by the
Subcommittee, numerous experts testified that the easy availability of
Social Security numbers (SSNs) in the public and private sectors, combined
with the numberfs widespread use as an individual identifier, greatly
facilitates the crime of identity theft. The bill would restrict the use
of the SSN by government and business, to make it less accessible to
identity thieves, while providing exceptions for legitimate and necessary
uses of the number.
gIdentity theft ruins individualsf good names and destroys
their credit ratings,h said Chairman McNulty. gIdentity thieves have
stolen the homes of elderly retirees, and have caused innocent persons to
be arrested when crimes are committed under a falsified identity. It is
time to place some common-sense limits on the use of Social Security
numbers by government and businesses in order to reduce their easy
availability and ensure the privacy of this sensitive information. I look
forward to working with my colleagues to move this legislation
forward.h
gBy some counts, more than 150 million Americansf private
information may have been compromised in some way over the past two years
alone,h said Ranking Member Johnson. gThe best way to stop Social Security
numbers from being compromised is to limit their availability in the first
place, and that is what this bill does.h
A summary of the bill: Social Security Number Privacy and
Identity Theft Prevention Act of 2007
Provisions related to Social Security numbers (SSNs) in the
public and private sectors
Federal, State, and local governments would be prohibited
from:
- Selling SSNs (limited exceptions would be allowed, such as to
facilitate law enforcement and national security, to ensure the accuracy
of credit and insurance underwriting information and certain other Fair
Credit Reporting Act purposes, for tax purposes, for research purposes,
and to the extent authorized by the Social Security Act). Further
exceptions may be made for other purposes by regulation.
- Displaying SSNs to the general public, including on the Internet.
- Displaying SSNs on checks issued for payment and accompanying
documents.
- Displaying SSNs on identification cards and tags issued to employees
or their families; patients and students at public institutions; and
Medicare cards.
- Employing prisoners in jobs that provide them with access to SSNs.
- Requiring the transmission of SSNs over the Internet without
encryption or other security measures.
The private sector would be prohibited from:
- Selling or purchasing SSNs (limited exceptions would be made for law
enforcement (including child support enforcement); national security;
public health; health or safety emergency situations; tax purposes; to
ensure the accuracy of credit and insurance underwriting information and
certain other Fair Credit Reporting Act purposes; if incidental to the
sale, lease or merger of a business; to administer employee or
government benefits; for some research; or with the individualfs
affirmative, written consent). Further exceptions may be made for other
purposes by regulation.
- Displaying SSNs to the general public, including on the Internet.
- Displaying SSNs on checks.
- Requiring the transmission of SSNs over the Internet without
encryption or other security measures.
- Making unnecessary disclosures of another individualfs SSN to
government agencies.
- Displaying the SSN on cards or tags issued to employees, their
family members, or other individuals.
- Displaying the SSN on cards or tags issued to access goods,
services, or benefits.
- Public and private sectors would be required to safeguard SSNs they
have in their possession from unauthorized access by employees or
others.
- Sale, purchase, or display of SSNs in the public or private sector
would be permitted by regulation in other circumstances, when
appropriate. In making this determination, regulators would consider
whether the authorization would serve a compelling public interest and
would consider the costs and burdens to the public, government, and
businesses. If sale, purchase, or display were to be authorized, the
regulation would provide for restrictions to prevent identity theft,
fraud, deception, crime, and risk of bodily, emotional, or financial
harm.
- A person would be prohibited from obtaining another person's SSN to
locate or identify the individual with the intent to harass, harm,
physically injure or use the individual's identity for an illegal
purpose.
- Would specify that, wherever a truncated SSN is used, it must be
limited to the last 4 digits of the number. (This truncation standard
does not change the permissible uses of the SSN.)
- State law governing use of SSNs would not be preempted where state
law is stronger.
- The National Research Council would be required to conduct a study
to evaluate the feasibility of banning the use of the SSN as an
authenticator.
Enforcement
- New criminal penalties (up to 5 years imprisonment and fine up to
$250,000) and civil penalties (up to $5,000 per incident) would be
created for violations of the law relating to the display, sale,
purchase, or misuse of the SSN, offering to acquire an additional SSN
for a fee, and for selling or transferring onefs own SSN.
- Prison sentences would be enhanced for SSN misuse associated with
repeat offenders (up to 10 years), drug trafficking or crimes of
violence (up to 20 years), or terrorism (up to 25 years).
- New criminal penalties (as much as 20 years in prison and fine up to
$250,000) and civil penalties (up to $5,000 per incident) would be
created for Social Security Administration employees who fraudulently
sell or transfer SSNs or Social Security cards.
- The bill permits enforcement by the Social Security Administration
(which would have civil monetary penalty authority); the Department of
Justice (which enforces criminal violations of federal law); and state
attorneys general (who would be granted civil enforcement authority over
private-sector users and state and local government). In addition,
individual victims affected by violations of this bill by federal
agencies would be provided with limited legal recourse to stop an
agencyfs violation and recover any actual damages they may have
suffered.
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